p. Consider a numerical example using the Solow growth model. Suppose that F(K, N) = K0.5NO.5, with d = 0.1, s = z= 1, and take a period to be a year. (a) Determine capital per worker, income per capita, and consumption per capita in the steady state. S 0.2, n = 0.01, and
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- Growth rates of per capita GDP: Compute the average annual growth rate ofper capita GDP in each of the cases below. Te levels are provided for 1980and 2014, measured in constant 2011 dollars.117 Assume a Cobb-Douglas production function, where © =0.5 and A = 1. If AN/N = 0.06, d = 0.04, and s = 0.2, what is the steady state value of capital per capita ??4. Assume an endogenous growth model with a production function that in per capita terms can be written as y = 0.8k. If the savings rate is s = 0.3, the rate of growth of population is n = 0.03, and the rate of depreciation is d = 0.1, how high is the rate of growth of output per capita? A. 14% B. 17% C. 13% D. 11% E. There is not enough information to calculate it.
- Population Growth Population growth in the US has, for a very long time been about 1% per year.Take the production function to be y = k0.5, where y and k are output andcapital per capita. The depreciation rate is about 10% per year and the savingsrate is about 20%. 1. What is the steady state capital per capita rate?2. From one period to the next, at what rate does total capital (not percapita) grow.3. If the population growth rate grew to 1.5%, how much would steady statecapital per capita change? Then how much is total capital changing atthis steady state?= 2. Consider a Solow growth model in which the production function is Yt AK²N₁¹/2, where A = 1. Moreover, assume that the depreciation rate is d = 0.02, the rate of population growth is n = 0.02, and the saving rate is s = = 0.2. a. Compute the value of the capital stock per worker in steady state. b. Draw a graph that represents the steady-state equilibrium of the model. c. Suppose that the capital-labor ration in year t is 90. What will the level of the capital- labor ratio be in year t+1? Will it increase or decrease in future periods? Explain. d. Compute the rate of change of the capital labor ratio between time t and t + 1. How does it compare to the rate of growth of the capital-labor ratio in steady state?Use the following table to find the steady-state values of the capital-labor ratio and output if the per-worker production 03 function is y=2k S Saving rate 8 Depreciation rate n Population growth rate A Technology 0.35 0.02 0.06 2 k* = Steady-state capital-labor ratio = y*= Steady-state output = (Round your responses to two decimal places.) CHILD Output, Investment, and Depreciation Capital-Labor Ratio Output Depreciation Investment After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end the line Q
- Nominal GDP (NGDP) Real GDP (RGDP) Estimated Resident Population by Age and Sex (1991+) (Annual-Mar) 3,970,000 4,044,900 4,101,300 4,148,000| 4,196,700 4,235,300 4,271,000 4,317,900 4,362,800 4,392,500 4,417,700 Data 2003 135,181 3,970,000 2004 144,502 4,044,900 2005 154,559 4,101,300 2006 162,937 172,004 4,148,000 2007 4,196,700 2008 186,673 4,235,300 2009 189,406 4,271,000 2010 194,306 4,317,900 Pad 2011 203,342 Page 4,362,800 4,392,500 4,417,700 2012 213,025 2013 217,489Assume that RGDP per capita in NZ typically grows at about 3.8% p.a.. Discuss the differences in RGDP per capita growth in the 2003-2008 and 2008-2013 periods in terms of our concept of booms and busts. Do this in 100 words or less.Only answer the 2nd MCQ question of the growth rate of output per capita
- Population Growth and Technological Progress-Work It Out An economy has a Cobb-Douglas production function: Y = K (LE)¹- The economy has a capital share of 0.20, a saving rate of 49 percent, a depreciation rate of 4.00 percent, a rate of population growth of 1.50 percent, and a rate of labor-augmenting technological change of 4.0 percent. It is in steady state. a. At what rates do total output and output per worker grow? Total output growth rate: Output per effective worker is constant in the steady state and does not change. increases in the steady state. declines in the steady state. % Output per worker growth rate: %9. Suppose there is no population or technological growth. Define k as the capital-to-labor ratio. If the per worker production function is given by y = ¹/2, the saving ratio is 0.3, and the depreciation rate is 0.1, then the steady state capital per worker ratio is (a) 1 (b) 2 (c) 4 (d) 6 9If Y = A*(K*L)^.5 a. What is the equation for the steady state capital per worker k* in terms of savings rate deprectation rate population growth rate and technology? b. If technology doubles how much does the steady state of capital increase by?